People that drive will do anything to try and save money as the cost of driving goes up and down. The best answer has been community transportation and joining car pools. While these are great ways to save on the cost of gas, by no means do they encompass the whole of driving.

Car owners are still stuck paying for car insurance coverage even when their driving is very limited. Even when using these other means of transportation, the car in the driveway still needs to be insured.

A lot of insurance agencies are considering new insurance plans. There is a new plan that some states are trying, pay per mile auto insurance.

The premiums for this kind of insurance would be based on how much many miles that you drive. Pay per mile auto insurance will make both drivers and insurance company’s quite relieved. Rates will be based on how many miles you drive so flat rates will be history.

Pay per mile auto insurance will help people by allowing them to have more say over their coverage and the price that they pay. Driver discounts for those that travel less miles makes complete sense to insurance companies. The cost for everyone will be reduced.

How would the number of miles that a driver travels be calculated? How can they make sure that there is no way to alter the system?

Although nothing is official, one possibility includes the installation of an odometer that is linked to the insurance company and sending all information about the amount of travel that you do or perhaps even using something like a GPS unit.

The less that a driver uses their vehicle, the lower their premiums or payments will be. Drivers that can keep their travel miles at under 15,000 would stand to see the biggest savings.

People that have been using other methods to get around would actually be rewarded in the form of serious reductions on their insurance rates. However, this is currently only available for persons in Arizona, Indiana, Illinois and Pennsylvania.